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Sales of telephones have increased dramatically over the last year. In order to take advantage of this increase, mammoth industries plans to expand production of its own model of telephone , while continuing its already very extensive advertising of the product.

Which of the following, if true provides most support for the view that mammoth industries cannot increase its sales by telephones by adopting the plan outlined above

(a) although it sells all the telphones that it produces, Mammoth industries share of all telphone sales has declined over the last year

(b) Mammoth industries average inventory of telephones awaiting shipment to retailers has declined significantly in the past years

(c) advertising has made the brand name of Mammoth industries widely known, but few consumers know that Mammoth industries own the world

(d) Mammoth industries telephone is one of three brands of telephone that have together account for the bulk of the last years increase in sales

(e) Desplite a slight decline in the retail price, sales of mammoth industries's telephones have falles in the last year.

Choice E states that 'desplite a slight decline in the retail price, sales of mammoth industries's telephones have fallen in the last year'. Sale of any product is suppose to rise with the fall in price. This is clearly not happening. Additionally, the sales of mammoth industries's telephones have come down when the "Sales of telephones have increased dramatically over the last year".
This clearly makes the Choice E the clearest explanation why mammoth industries cannot increase its sales of telephones by adopting the plan outlined here.

beatgmat wrote:

Sales of telephones have increased dramatically over the last year. In order to take advantage of this increase, mammoth industries plans to expand production of its own model of telephone , while continuing its already very extensive advertising of the product.

Which of the following, if true provides most support for the view that mammoth industries cannot increase its sales by telephones by adopting the plan outlined above

(a) although it sells all the telphones that it produces, Mammoth industries share of all telphone sales has declined over the last year

(b) Mammoth industries average inventory of telephones awaiting shipment to retailers has declined significantly in the past years

(c) advertising has made the brand name of Mammoth industries widely known, but few consumers know that Mammoth industries own the world

(d) Mammoth industries telephone is one of three brands of telephone that have together account for the bulk of the last years increase in sales

(e) Desplite a slight decline in the retail price, sales of mammoth industries's telephones have falles in the last year.